In the Keynesian model, a firm's high menu costs cause

The primary benefit of the automatic stabilizers is:

a. they provide public assistance through legislative decision making b. they require no new legislative action, so there is no legislative lag before these tools respond to fluctuations in the business cycle. c. they require legislative action, so there is a lag in response to these tools to fluctuations in the business cycle, and there is time to identify the spillover effects. d. none of the above.

A depreciation in Micromania's currency, the micro, occurs when the exchange rate changes from

a. 50 micros = $2 to 25 micros = $1 b. 100 micros = $2 to 200 micros = $1 c. $1 = 75 micros to $2 = 100 micros d. $3 = 75 micros to $1 = 25 micros e. $1 = 50 micros to $2 = 50 micros